--- title: A Closer Look at DBAs description: In this post, we’ll take a closer look at the benefits of a DBA and how you go about establishing a DBA in Alabama. image: https://blog.avadiancu.com/hubfs/Blog%20Images/New%20Ebook%20May%2022/GettyImages-1057253610-1.jpg --- [Skip to main content](https://blog.avadiancu.com/a-closer-look-at-dbas#maincontent) # A Closer Look at DBAs As we mentioned in the [first post in this series](https://blog.avadiancu.com/things-to-think-about-when-youre-ready-to-start-your-business), if you are a sole proprietorship, a “doing business as” (DBA) name is the name your business will use instead of using your name (i.e. “Crafts by Carla” instead of “Carla Smith”). In this post, we’ll take a closer look at the benefits of a DBA and how you go about establishing a DBA in Alabama. ![GettyImages-1057253610-1](https://blog.avadiancu.com/hs-fs/hubfs/Blog%20Images/New%20Ebook%20May%2022/GettyImages-1057253610-1.jpg?width=1200&name=GettyImages-1057253610-1.jpg) **Benefits of a DBA** You can open a checking account using your DBA – something that has the benefit of keeping your personal assets separate from your business assets. One of the biggest benefits of a DBA is that they are less expensive to start and maintain than an LLC. *It is important to know, however, that a DBA offers no protection for your personal assets. If your business is sued, your personal assets could be in jeopardy.* DBAs are sometimes used by LLCs or corporations (i.e. an LLC or corporation used as an umbrella entity that may hold funds for multiple LLCs). **How a DBA Pays Taxes** An individual DBA pays taxes at the individual level, so you’d be paying income tax plus a self-employment tax. Your business income would be included with your Form 104 on a Schedule C. Business owners who are DBA use their Social Security Number instead of a separate Employer Identification Number (EIN). An LLC using a DBA pays taxes under the EIN of the primary LLC. **Establishing a DBA in Alabama** The State of Alabama does not require you to submit any official formation documents, including a Name Reservation Request Form. You will, however, need to check the [Business Entity Records](https://arc-sos.state.al.us/CGI/CORPNAME.MBR/INPUT) to make sure another business isn’t already using your desired name. An operating agreement is not needed if your DBA is a sole proprietorship, but if your DBA is a partnership, you’ll be required to have one. We take a closer look at operating agreements in the [final post](https://blog.avadiancu.com/operating-agreements/corporate-resolutions) in this series. **We Are Here to Help** Avadian’s Business Services team is here to help. We love to help people as they pursue their dreams of creating a successful business. Of course, we have products and services like checking and savings accounts and merchant services that help you pay bills and send invoices, but we also have a lot of accumulated wisdom and experience. We’d love to chat with you about how we can help you get your business off the ground. 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